Sir John Peace, Chairman – Midlands Engine Partnership
The Midlands is the largest regional economy outside London, home to 11 million people and around 830,000 businesses. It’s a region that we Midlanders are fiercely proud of – for our resilience, our ingenuity and our ability to punch above our weight when it comes to creating value for the nation. But we also know that the Midlands has immense potential yet to be unlocked.
Building on our historic leadership in automotive and manufacturing, we are emerging as a leader in the sectors with the greatest potential for growth – sectors like AI, medtech, agri-tech, advanced manufacturing, net zero, space technology and many more. Our world-class innovation assets, strategically located at the heart of the UK, position us perfectly to seize new opportunities and drive economic development. And the opportunities for investors, right across our region, are truly exceptional.
Despite this, foreign direct investment in the Midlands is more than 80% lower than in London. Many Midlands clusters receive a low share of sector-relevant foreign and domestic capital investment relative to their significance. For example, the Midlands accounts for 17% of UK net-zero transport technologies businesses but attracts just 4% of foreign and 7% of domestic capital investment.
Per-capita public sector capital investment figures in the Midlands are 20% below the UK average and the latest Research England funding allocations saw the Midlands receive less funding per capita than any other English region, despite being home to several world-leading universities.
We can close the gap if we come together to tell our story and champion our potential to investors and the policymakers seeking to drive growth – something the Midlands Economic Summit enables us to do.
This event, now in its second year, was a chance for partners to forge important connections and share insights. The Summit, brought to life by Ninder Johal and his team at Nachural, goes from strength to strength – unifying the businesses employing the people that are driving the Midlands economy. And now with two mayors in our region and a new mayoral authority in the East Midlands, it’s this collaboration between the two – public organisations and businesses – that will be critical for future growth in the region.
The Midlands Engine Partnership is a unified regional voice
Together, we are a proactive collaboration of public sector, private sector, academic and government partners from across the Midlands. Apolitical by design and solely focused on driving inclusive economic development, the Partnership seeks to increase productivity, innovate across sectors, build infrastructure for growth and champion global investment.
Since the inaugural Midlands Economic Summit took place in 2023, Midlands Engine partners have founded Midlands Nuclear; Midlands Mindforge has been established by our universities to scale up their research work; and the Midlands Mental Health and Productivity Pilot was recognised as a national leader in workplace wellbeing.
In the Spring, Midlands Engine partners came together at UKREiiF – an event dedicated to catalysing investment into the country’s places, towns and cities. It was here that an updated Midlands Investment Portfolio was announced – now worth in excess of £48 billion with the potential to create around 380,000 jobs.
And later this year, we will be bringing together Midlands Queen’s, and now King’s, Awards for Enterprise recipients, forming a new network of highly innovative businesses, fostering collaboration even more.
The Partnership continues to produce reports focused on the region’s key sectors. In February, more than 100 Midlands Engine food industry partners collaborated to create a Food White Paper – setting out how the innovation and expertise of the Midlands, with our leading agri-tech clusters, offers the solutions for growth in the sector.
What’s more, the newly established Midlands Energy Security Taskforce will be working to identify barriers to energy resilience, develop clear priorities to overcome them and advocate for policy changes.
The key to successful pan-regional collaboration
If we are to seize emerging opportunities for regional growth, we must ensure the public and private sector work to their strengths together – and this has been a focus of the Midlands Engine Partnership since its inception.
Effective government policies and strategic investments are essential in ensuring that the Midlands receives its fair share of funding and resources. We need targeted initiatives that recognise the unique strengths of our region and help us leverage these strengths to attract both domestic and international investors.
Government incentives for research and development can also significantly boost innovation in our key sectors. Tax incentives, grants and funding programs designed to encourage R&D activities will help our businesses stay at the cutting edge of technology and maintain their competitive edge in the global market.
But while government support is vital, the private sector has a significant part to play. Private investments in new technologies, startups and infrastructure projects can drive economic growth and create jobs. By fostering a collaborative environment where businesses can thrive, we can attract more private investors to the region.
The Midlands’ strong network of universities and research institutions is also a major asset, producing a steady stream of skilled graduates and cutting-edge research that help make the region an attractive destination for high-tech industries. Strengthening partnerships between academia and industry will further enhance our innovation ecosystem and drive economic growth.
The Midlands has a unique and compelling story to tell and an unwavering commitment to growth and prosperity. Our rich heritage, combined with our innovative spirit and collaborative efforts, sets us apart. By uniting our voices and working together, we can attract the investment needed to unlock our full and significant economic potential.